Required Information Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.] Golden Corporation's current year Income statement, comparative balance sheets, and additional Information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of Inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for Inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 168,000 89,000 607,000 864,000 345, 700 (160,000) $ 1,049,700 $ 111,400 75,000 530,000 716,400 303,000 (106,000 $ 913,400 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 95,000 32,000 127,000 $ 75,000 27,100 102,100 596, 800 203, 200 122,700 $ 1,049,700 572,000 166,000 73,300 $ 913,400 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 1,812,000 1,090,000 722,000 498,000 54,000 170,000 27,600 $ 142,400 Additional Information on Current Year Transactions a. Purchased equipment for $42,700 cash. b. Issued 12,400 shares of common stock for $5 cash per share. c. Declared and paid $93,000 In cash dividends. Problem 16-6A (Algo) Indirect: Statement of cash flows LO P2, P3 Required: Prepare a complete statement of cash flows using the Indirect method for the current year. (Amounts to be deducted should be indicated with a minus slgn.) IS Answer is not complete. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income 142,400 Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense 54,000 Changes in current assets and current liabilities Increase in accounts receivable 14,000 Increase in inventory 77,000 Increase in taxes payable 4.900 $ 292,300 Cash flows from investing activities Cash paid for equipment (42,700) (42,700) Net cash used in investing activities Cash flows from financing activities: Cash received from stock issuance Cash paid for cash dividends 62,000 (93,000) S Net cash used in financing activities Net increase (degrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year (31,000) 218,600 111,400 S 330,000
